A company owned by Saudi billionaire Mohammed Bin Issa Al Jaber has been unsuccessful in its bid to claim $381m in damages from Emaar, marking the end of a long-running and complex legal battle.
In a statement posted on the Dubai Financial Market (DFM) website on Monday, Emaar confirmed that an amicable settlement had been reached between the Dubai-based real estate giant and Jadawel International.
The deal ensures that neither party has any claim on the other. It is essentially a victory for Emaar, coming 18 months after a decision by a Saudi court that left the firm facing a massive payout.
In 2003, Emaar and Jadawel entered a conditional agreement to undertake joint venture work in Saudi Arabia.
However, according to Emaar, that agreement was conditional on the approval of its board of directors and competent authorities in the UAE – neither of which were obtained.
In 2004, Jadawel filed a case against Emaar at the Board of Grievances in Riyadh for failing to implement the agreement and claimed $381m in damages.
The case was referred to arbitration in 2006, and found in Emaar’s favour in September 2008. The arbitrators rejected Jadawel’s claim for damages, and charged the firm the full fees for the arbitration process.
However, that judgment was revoked in August last year following an appeal to Saudi Arabia’s Board of Grievances by Jadawel.
In August last year, Emaar in turn filed a case with the Court of Appeal of the Board of Grievances, in an attempt to allow the original arbitration ruling to stand.
Monday’s announcement means that the original conditional agreement has been revoked, and that neither party will be able to file any future claims in connection with it.
“Over the past months, efforts were made to reach an amicable settlement in respect to the dispute between Jadawel International and Emaar Properties PJSC, which was submitted to the Board of Grievances in the Kingdom of Saudi Arabia,” said the Emaar statement on the DFM website.
“In this respect, both companies would like to announce that the dispute has now been resolved amicably with neither party having any claim against the other in respect of the dispute. We would like to thank all the parties who participated in the efforts and assisted in the achievement of this amicable settlement.”
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